--- title: "Meaning & Key Takeaway of: It can be argued that the U.S. brokerage…" description: "\"It can be argued that the U.S. brokerage and investment banking industry has transformed the modern American stock market into nothing more than a mech..." image: "https://sms4smile.com/quotes/i/cb2/peter-schiff-8095_banking_it-can-be-argued-that-the-u-s-brokerage_2703093.jpg" --- # It can be argued that the U.S. brokerage and investment… ![“It can be argued that the U.S. brokerage and investment banking industry has transformed the modern American stock market into nothing more than a mechanism for transferring wealth from shareholders to management.” quote by Peter Schiff](https://sms4smile.com/quotes/i/cb2/peter-schiff-8095_banking_it-can-be-argued-that-the-u-s-brokerage_2703093.jpg) [Download](https://sms4smile.com/quotes/i/cb2/peter-schiff-8095_banking_it-can-be-argued-that-the-u-s-brokerage_2703093.jpg) [Open image](https://sms4smile.com/quotes/i/cb2/peter-schiff-8095_banking_it-can-be-argued-that-the-u-s-brokerage_2703093.jpg) > “It can be argued that the U.S. brokerage and investment banking industry has transformed the modern American stock market into nothing more than a mechanism for transferring wealth from shareholders to management.” [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Critique of financial industry suggesting it primarily benefits executives at shareholders' expense. **In simple terms:** Finance may favor management over investors. Key Takeaway Demand greater transparency in finance. Themes economics power inequality Mood critical analytical Type economic political When to use this quote - investment decisions - policy advocacy - shareholder activism Key Concepts wealth transfer corporate governance Questions to Reflect On - How can investors protect themselves? - What reforms could balance interests? A Different Perspective Complex market dynamics also create value for investors. ★ ★ ★ ★ ★ No ratings yet [Banking](https://sms4smile.com/quotes/about/banking/) [Banking Industry](https://sms4smile.com/quotes/about/banking-industry/) [Brokerage](https://sms4smile.com/quotes/about/brokerage/) [Brokerage Investment](https://sms4smile.com/quotes/about/brokerage-investment-2748395/) [Customer](https://sms4smile.com/quotes/about/customer/) [Industry](https://sms4smile.com/quotes/about/industry/) [Industry Transformed](https://sms4smile.com/quotes/about/industry-transformed-2748394/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Investment banking](https://sms4smile.com/quotes/about/investment-banking/) [Management](https://sms4smile.com/quotes/about/management/) [Mechanism](https://sms4smile.com/quotes/about/mechanism/) [Modern](https://sms4smile.com/quotes/about/modern/) [Shareholders](https://sms4smile.com/quotes/about/shareholders/) [Transferring Wealth](https://sms4smile.com/quotes/about/transferring-wealth-2601753/) [Transformed](https://sms4smile.com/quotes/about/transformed/) [Wealth](https://sms4smile.com/quotes/about/wealth/) ## Related quotes > [Brokerage firms and their executives cannot use threats regarding research activities as a way to obtain investment banking business. 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I chose a boutique firm that fit my specifications.](https://sms4smile.com/quotes/ryan-serhant/i-don-t-come-from-the-biggest-brokerage-in-town-i-chose-a-boutique/) [Ryan Serhant](https://sms4smile.com/quotes/author/ryan-serhant/) > [I like analyzing and managing large-scale transaction processing platforms, record-keeping administration, and brokerage trading services.](https://sms4smile.com/quotes/abigail-johnson/i-like-analyzing-and-managing-large-scale-transaction-processing/) [Abigail Johnson](https://sms4smile.com/quotes/author/abigail-johnson/) > [Community. A friend started a real estate brokerage a few years ago. By the time she'd added her second employee, she was a pillar…](https://sms4smile.com/quotes/tom-peters/community-a-friend-started-a-real-estate-brokerage-a-few-years-ago-by/) [Tom Peters](https://sms4smile.com/quotes/author/tom-peters/) > [Brokerage firms don't sell customers stock so much as they sell those horrible mutual funds](https://sms4smile.com/quotes/michael-steinhardt/brokerage-firms-don-t-sell-customers-stock-so-much-as-they-sell-those/) [Michael Steinhardt](https://sms4smile.com/quotes/author/michael-steinhardt/) > [ \[Adviser is\] the ones who do the job very well are the ones who lay out the range of options, filter down the range… ](https://sms4smile.com/quotes/lawrence-o-donnell/adviser-is-the-ones-who-do-the-job-very-well-are-the-ones-who-lay-out/) [Lawrence O'Donnell](https://sms4smile.com/quotes/author/lawrence-o-donnell/) > [In my community of minimalists, there are really wealthy people who work at stock brokerage firms, there are people who are unemployed, but it…](https://sms4smile.com/quotes/fumio-sasaki/in-my-community-of-minimalists-there-are-really-wealthy-people-who/) [Fumio Sasaki](https://sms4smile.com/quotes/author/fumio-sasaki/) > [Clinton provided the final transition between decaying old-style liberalism and the new neoliberalism and neoconservatism - which are kind of incestuous first cousins. That…](https://sms4smile.com/quotes/jeffrey-st-clair/clinton-provided-the-final-transition-between-decaying-old-style/) [Jeffrey St. Clair](https://sms4smile.com/quotes/author/jeffrey-st-clair/) > [And I think we need a combination of a freeze, potentially, and also we need to sit down with the - with the banking…](https://sms4smile.com/quotes/debbie-wasserman-schultz/and-i-think-we-need-a-combination-of-a-freeze-potentially-and-also-we/) [Debbie Wasserman Schultz](https://sms4smile.com/quotes/author/debbie-wasserman-schultz/) ## More by Peter Schiff > [Most paper money initially existed as a substitute for gold. That's what gave it value. But right now what gives a currency value is…](https://sms4smile.com/quotes/peter-schiff/most-paper-money-initially-existed-as-a-substitute-for-gold-that-s/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen…](https://sms4smile.com/quotes/peter-schiff/perhaps-the-most-important-reason-to-be-skeptical-of-government/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Every time the market has corrected, since 2008, it's always been the Fed that's made the bottom. 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Unfortunately, this kind of common-sense thinking never seems to penetrate academic circles.](https://sms4smile.com/quotes/peter-schiff/printing-money-creates-inflation-which-weakens-an-economy/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The fiat-based system has produced enormous global imbalances that are straining the global economy. Ultimately, I think the whole thing gives way and what…](https://sms4smile.com/quotes/peter-schiff/the-fiat-based-system-has-produced-enormous-global-imbalances-that/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Central banks are choosing to increase their gold holdings as a percentage of total reserves. They obviously think there is a reason to do…](https://sms4smile.com/quotes/peter-schiff/central-banks-are-choosing-to-increase-their-gold-holdings-as-a/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Once the government runs out of foreign and private sector bidders for new Treasurys, the Federal Reserve will be the only buyer, and the…](https://sms4smile.com/quotes/peter-schiff/once-the-government-runs-out-of-foreign-and-private-sector-bidders/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The real bubble in China is in US Treasuries, in US dollars.](https://sms4smile.com/quotes/peter-schiff/the-real-bubble-in-china-is-in-us-treasuries-in-us-dollars/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [My mother always taught me that two wrongs don't make a right. We shouldn't bail out Wall Street. We shouldn't bail out Detroit. 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They want them in the currency that they are…](https://sms4smile.com/quotes/peter-schiff/most-governments-not-all-of-them-but-most-certainly-don-t-want-their/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) [Explore all 84 Peter Schiff quotes ](https://sms4smile.com/quotes/author/peter-schiff/) ## More Banking quotes > [If I could wave a magic wand, I'd break up the banking system.](https://sms4smile.com/quotes/kenneth-c-griffin/if-i-could-wave-a-magic-wand-i-d-break-up-the-banking-system/) [Kenneth C. Griffin](https://sms4smile.com/quotes/author/kenneth-c-griffin/) > [Historically, usury was defined as any interest whatever on an unproductive loan.Our whole banking system I have ever abhorred, I continue to abhor, and…](https://sms4smile.com/quotes/john-adams/historically-usury-was-defined-as-any-interest-whatever-on-an/) [John Adams](https://sms4smile.com/quotes/author/john-adams/) > [I am alive. Up here with the song of the engine and the air whispering on my face as the sunlight and shadows play…](https://sms4smile.com/quotes/stephen-coonts/i-am-alive-up-here-with-the-song-of-the-engine-and-the-air-whispering/) [Stephen Coonts](https://sms4smile.com/quotes/author/stephen-coonts/) > [It's not that I have any general aversion to technology but online banking just seems to be asking for trouble. You can have enough…](https://sms4smile.com/quotes/david-essex/it-s-not-that-i-have-any-general-aversion-to-technology-but-online/) [David Essex](https://sms4smile.com/quotes/author/david-essex/) > [When a government is dependent upon bankers for money, they and not the leaders of the government control the situation](https://sms4smile.com/quotes/napoleon-bonaparte/when-a-government-is-dependent-upon-bankers-for-money-they-and-not/) [Napoleon Bonaparte](https://sms4smile.com/quotes/author/napoleon-bonaparte/) > [“Suckers think that you cure greed with money, addiction with substances, expert problems with experts, banking with bankers, economics with economists, and debt crises…](https://sms4smile.com/quotes/nassim-nicholas-taleb/suckers-think-that-you-cure-greed-with-money-addiction-with/) [Nassim Nicholas Taleb](https://sms4smile.com/quotes/author/nassim-nicholas-taleb/) > [My father was in real estate, banking, and land management. As family life, it was very conventional, happy, and comfortable. We weren't wealthy, but…](https://sms4smile.com/quotes/julia-child/my-father-was-in-real-estate-banking-and-land-management-as-family/) [Julia Child](https://sms4smile.com/quotes/author/julia-child/) > [I only know one thing: Everything I learned about the banking business, I learned in the banking towers of the Societe.](https://sms4smile.com/quotes/jerome-kerviel/i-only-know-one-thing-everything-i-learned-about-the-banking-business/) [Jerome Kerviel](https://sms4smile.com/quotes/author/jerome-kerviel/) > [I have nothing against investment banking, but it's like massaging money rather than creating money.](https://sms4smile.com/quotes/michio-kaku/i-have-nothing-against-investment-banking-but-it-s-like-massaging/) [Michio Kaku](https://sms4smile.com/quotes/author/michio-kaku/) > [If you've taken Econ 101, you know that the quantity of money rises only when the banking system makes a net loan.](https://sms4smile.com/quotes/kenneth-fisher/if-you-ve-taken-econ-101-you-know-that-the-quantity-of-money-rises/) [Kenneth Fisher](https://sms4smile.com/quotes/author/kenneth-fisher/) > [I want the best people, not just on the banking side but on innovation and technology.](https://sms4smile.com/quotes/ana-patricia-botin/i-want-the-best-people-not-just-on-the-banking-side-but-on-innovation/) [Ana Patricia Botin](https://sms4smile.com/quotes/author/ana-patricia-botin/) > [“Intellectually and compassionately explaining the reason freedom works is required for credibility.”](https://sms4smile.com/quotes/ron-paul/intellectually-and-compassionately-explaining-the-reason-freedom/) [Ron Paul](https://sms4smile.com/quotes/author/ron-paul/) > [With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of 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